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Coulson Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2018,
and its financial statements will be issued on March 15, 2019. Under current U.S. GAAP, how would the debt be classified if the refinancing is completed on December 15, 2016? What if instead it is completed on January 15, 2019?
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- Fleener Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2016,and its financial statements will be issued on March 15, 2019. Under current IFRS, how would the debt be classified if the refinancing is completed on December 15, 2016? What if instead it is completed on January 15, 2019?Canton Cave Company provided the following schedule of liabilities on December 31, 2019: Accounts payable Notes payable-bank Interest payable Mortgage payable-10% Bonds payable *Bank notes payable include two separate notes payable to First Bank > AP3, 000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six 6,500,000 8,000,000 150,000 2,000,000 4,000,000 months. > A one-year, P5,000,000, 11% note issued January 2, 2019. On December 31, 2019, Canton Cave negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note issued January 2, 2020. *The 10% mortgage note was issued October 1, 2016 with a term of 10 years. > Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest within 10 days of the date the payment is due. On December 31, 2019, Canton Cave is three months behind in paying its required initial payment. The bonds payable are 10-year, 8% bonds,…Coulson Company is refinancing long-term debt. Accessed March 15, 2022. Its fiscal year ends December 31, 2021. The refinancing is scheduled to be completed on December 15, 2021. What if it's finished on January 15, 2022?
- On December 31, 2019, GMC had a document payable with a value in the $ 100,000 books. GMC has faced economic difficulties that have not allowed to meet the payment of this debt. Suppose that on the date mentioned the The bank agreed to change the terms of the loan as follows: the principal (maturity value) was reduced to $ 80,000, the expiration date was changed to 31 December 2022, and the contractual interest rate was reduced from 15% to 10%. Determine the effect of this restructuring of debt on the Net Income of GMC on 12/31/19. to. GMC is going to report a profit of $ 20,000. b. GMC will report a profit equal to 5% of the principal. c. GMC is going to report a profit of $ 4,000. d. When the terms of the contract are adjusted, the debtor does NOT report earnings.18. At 1 July 2019, a company's allowance for doubeful debts was RM48,000. At 30 June 2020, trade receivables amounted to RM838,000. It was decided to write-off RM72,000 of these debts and adjust the allowance for doubeful debts to RM60,000. What are the final amounts for inclusion in the company's statement of financial position at 30 June 2020? a) Trade receivables RMK38,000 ; allowance for doubtful debts RM60,000 : net balance RM778,000 b) Trade receivables RM766,000 ; allowance for doubtful debts RM60,000 : net balance RM706,000 e) Trade receivables RM766,000 ; allowance for doubtful debts RMI08,000 ; net balance RM658,000 d) Trade receivables RM838,000 ; allowance for doubtful debts RMI08,000 : net balance RM730,000The controllers of Kingbird, Inc. and Pina Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companies’ short-term debt.Kingbird, Inc. On December 31, 2017, Kingbird, Inc. has $1,920,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Kingbird issued 19,200 shares of common stock at $75 per share. Kingbird used the proceeds of $1,440,000 from the stock issuance, along with $624,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Kingbird will issue its December 31, 2017 financial statements on February 25, 2018.Pina Corp. On December 31, 2017, Pina Corp. has $2,880,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Pina retired the notes, along with $192,000 in accrued interest, in full on January 31, 2018. On February 11, 2018, Pina obtained…
- Indonesia Company had P2,000,000 note payable due on June 30, 2021. Under the existing loan facility on December 31, 2020, the entity had the discretion to refinance the note payable for at least 15 months after the end of the reporting period. On December 31, 2020, what amount of the note payable should be reported as non-current liability?IFRS rules for reclassification of short-term debt are similar to U.S. GAAP except the short-term debt refinancing must occur ________. Group of answer choices at any time before the financial statements are issued by the balance sheet date by the balance sheet date unless the company has an existing arrangement before the end of the year-endThe controllers of Teal Mountain, Inc. and Indigo Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companies' short-term debt. Teal Mountain, Inc. On December 31, 2017, Teal Mountain, Inc. has $2,320,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Teal Mountain issued 23,200 shares of common stock at $75 per share. Teal Mountain used the proceeds of $1,740,000 from the stock issuance, along with $754,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Teal Mountain will issue its December 31, 2017 financial statements on February 25, 2018. Indigo Corp. On December 31, 2017, Indigo Corp. has $3,480,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Indigo retired the notes, along with $232,000 in accrued interest, in full on January 31, 2018. On…
- At December 31, 2018, Burr AG owes €500,000 on a note payable due February 2019. (a) If Burr intends to refinance the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much (if any) of the €500,000 should be reported as a current liability at December 31, 2018? (b) If Burr pays off the note on February 15, 2019, and then borrows €1,000,000 on a long-term basis on March 1, how much (if any) of the €500,000 should be reported as a current liability at December 31, 2018, the end of the fiscal year?An entity had a note payable P5,000,000 due June 15, 2021. The entity signed an agreement on December 1, 2020 to borrow up to P5,000,000 to refinance the note payable on a long-term basis with no payments due until 2022. The financing agreement stipulated that borrowing may not exceed 80% of the value of the collateral. At the date of the issuance of 2020 financial statements, the value of the collateral was P6,000,000 and is not expected to fall below this amount. What amount of the note payable should be classified as noncurrent on December 31, 2020?On January 1, 2020, Crane Company exchanged equipment for an $800000 zero-interest-bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 9%. The present value of $1 at 9% for three periods is 0.77. What amount of interest revenue should be included in Crane's 2021 income statement?